Investor assets in India's tax saving mutual funds reach 2-year high

According to India's mutual fund industry body AMFI, the total AUM of ELSS, or tax-saving funds, stood at Rs 25,069 crore at the end of January 2013. .

The ELSS funds generally see significant inflows between December and March, as investors look to invest in schemes offering tax benefits as part of their fiscal-end tax planning activities.

Investments up to Rs 1 lakh in ELSS funds by eligible investors qualify for tax deduction under Section 80C of Income Tax Act. An investment of Rs 1 lakh in ELSS funds can help an investor save up to Rs 30,900 from his/her total tax liability.